Accommodation suppliers urged to stop demanding deposit from NSFAS funded university students
The National Student Financial Aid Scheme (NSFAS) has urged landlords not to demand a deposit or top-up payment from NSFAS-funded students.
This comes after NSFAS received reports about some accommodation suppliers who demand NSFAS-funded students to pay for a deposit or top-up payment to be able to get usage of the permitted private accommodation.
Friday, February 7, 2025
"NSFAS reminds accommodation suppliers on the obligatory conditions, as furnished by the Standardised Fixed-Term Lease Arrangement between the personal accommodation vendors and NSFAS funded students," NSFAS stated in an announcement on Thursday.
The Standardised Fixed-Term Lease Agreement states which the lease will likely be paid month-to-month on the accommodation company (lessor) by NSFAS, on behalf of the lessee (NSFAS funded student), in accordance with the NSFAS terms and conditions for personal accommodation companies’ participation on the student accommodation portal.
"The lessor may not involve or allow the lessee to pay for a deposit, top-up payments, or any other kinds of payment to the lessor, or any other person in reference to this arrangement, like payment of rent, whilst awaiting payment from NSFAS. The lessor shall have no recourse against the lessee for any default in the payment of rent by NSFAS," the arrangement reads.
The NSFAS terms and conditions for private accommodation companies’ participation on the student accommodation portal also states that: "Where the NSFAS-funded student is defunded more info due to an incorrect selection by NSFAS, the coed won't be chargeable for payment of any arrear rent into the accommodation service nsfas document submission deadline provider, up until eventually the day of being defunded."
NSFAS described that where the NSFAS-funded student chooses to continue occupying the leased premises, notwithstanding being defunded by NSFAS, the student are going to be chargeable for payment of hire for the lessor from the date of being defunded.
"Where the student is defunded by NSFAS due to a misrepresentation by the lessee/guardian at any stage, the student must immediately vacate the leased property; and will be liable for payment of all rent due to the accommodation provider.
"Where the student moves, accommodation providers without the prior approval of NSFAS, NSFAS may elect not to pay any rental to the website new accommodation provider, and any such rental payments will be for the student read more own account," the scheme said.
The scheme emphasised that any dispute arising between the parties regarding the interpretation or implementation of the agreement, must be dealt with in accordance with any dispute resolution procedure determined by NSFAS for this purpose.
From: nsfas academic pathways SAnews.gov.za